State and federal authorities have said they intend to issue a joint permit to Horsehead Resources Development Co. Inc. to store hazardous waste at its zinc plant in Palmerton.

In legal notices published yesterday in area newspapers, the state Department of Environmental Resources and the U.S. Environmental Protection Agency said they made a preliminary decision to issue a permit to HRD for the storage, treatment and disposal of electric arc furnace dust, a hazardous byproduct of the steel industry.

Horsehead recycles the dust into a variety of zinc-related products.

DER and EPA said they will issue the joint permit July 16 , after a 45-day public review.

"It's been a long process and considering the public response last time, I'm sure there will be a public hearing in Palmerton about this," said Joseph Hayes, director of the Hazardous Waste Permits division of DER in Harrisburg.

Through a corporate restructuring several months ago, Horsehead took over the recycling operations of Zinc Corp. of America. Zinc Corp's predecessor, the New Jersey Zinc. Co., applied for the permit in 1983.

In October 1988, the DER held a public hearing for Palmerton residents to voice concerns about ZCA's application for the permit. More than 100 people turned out in protest.

Less than a month later, DER denied the permit. DER said the application was denied because ZCA did not have proper insurance, did not have sufficient funds and plans to maintain the storage facility and did not have adequate controls to manage wind and water dispersal of the hazardous material.

"HRD has complied with the regulations now. The storage facility is completely enclosed and the company has taken measures, including hanging some kind of curtains, to control air emissions," said Hayes.

The dust -- consisting mostly of iron and zinc oxides but with significant levels of lead and cadmium -- arrives in Palmerton by truck and by rail.

Company officials were unavailable to comment on the DER and EPA announcement.

Last November, ZCA agreed to pay $80,000 in penalties for improperly storing the lead waste, and for allowing EAF dust to spill from the trucks onto Palmerton streets.

The agreement with DER required the company to remove the lead waste from the Palmerton plant in phases and transport it to the company's Oklahoma facility, which is being expanded.

ZCA also had to install a truck-washing facility at the plant to remove the dust from their trucks after transport.

Once the dust is unloaded at the plant, it is conveyed to a storage pile and later to a kiln-firing operation. The conveyor systems that transports the dust had to be fully enclosed to meet DER regulations.

The kiln produces three materials, a zinc oxide, an iron-rich material and a lead concentrate. The zinc oxide is processed further at another facility to produce zinc metal.

The iron-rich material is used as a road base. The lead concentration is processed further at another facility to recover the remaining zinc, lead and cadmium.